Tobacco giants British American Tobacco, Britain'sImperial Tobacco, Philip Morris and Japan Tobacco challenged the laws in Australia's High Court, claimingthe rules were unconstitutional because they effectivelyextinguished their intellectual property rights.

The court found Australia's laws to force companies toremove all branding and sell tobacco only in plain olive greenpackets, which also carry graphic health warnings, were legaland did not breach trademark rights.

The laws, the toughest in the world, are in line with WorldHealth Organisation recommendations and are being watchedclosely by Britain, Norway, New Zealand, Canada and India, whichare considering similar measures to help fight smoking.